Broad markets were quiet during this shortened week.
But we continue to stack the wins and closed out two more this week!
That is why it’s important to keep focused and ignore the monkey chatter that happens when losses occur.
Now, the CBOE Volatility Index (VIX), aka the “fear” index, is right above our key 15 levels, trading at 16.
That means there’s not much fear going into the weekend and market bias continues to be higher.
Now let’s talk shop.
Here’s a recap of what we did this week.
Buy-to-open the SOLO June 18, 2021, $4 call
Buy-to-open the VIPS July 16, 2021, $24/$28 call spread
Sell-to-close SOLO June 18, 2021, $4 call
Buy-to-open the RKT June 18, 2021, $25 call
Sell-to-close IP July 16, $65/$67.50 call spread
Right now, we’re holding:
- Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
- RLX Technology Inc. (RLX) June 18, 2021, $15/$17.50 call spread
- OUT July 16, 2021, $25 call
- VLDR July 16, 2021, $12.50/$15 call spread
- RKT June 18, 2021, $25 call
- VIPS July 16, 2021, $24/$28 call spread
This is my journal which is a debrief of every trade closed or expired to analyze what happened, why it happened and how it can be done better — like what the military uses after missions.
International Paper Company (IP) July 16, 2021, $65/$67.50 call spread
Entry Date: May 20, 2021
Outcome: Closed for a 31% gain.
Notes: This is a solid example on how spreads can help on stocks that are slower moving. I was looking for a big move higher, but hedged that with selling the higher strike. Even though shares are up 3% from our entry, the decay from the short option benefited our position.
SOLO June 18, 2021, $4 call
Entry Date: June 1, 2021
Outcome: Closed for a 92% gain.
Notes: We executed this perfectly.
That’s all for today.
Now it’s time to head to the pool with a fresh jalapeno margarita - TGIF!
I'll have a new trade on Monday and have a great weekend.
To your wealth, freedom, and options!
Joshua M. Belanger